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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (87945)	1/6/1999 9:23:00 AM
From: Frank Ellis Morris	Respond to of 176387

Good Morning GLOBEX PRICES AS OF 01/06/99 08:15 AM TRADE DATE: 01/06/99 CONTRACT LAST NET CHGE S&P 500 MAR99 1265.00 +1180 NSDQ100 MAR99 1948.95 +2445 If AOL does not move up today there is going to be a riot of people trying to choke those MM who are keeping this stock down. Today is going to be a great leap at the opening Hope the day will end well?? frank

To: Ibexx who wrote (87945)	1/6/1999 9:23:00 AM
From: Boplicity	Respond to of 176387

.125 from it, close enough. Some up more like ATHM, MSPG. <ggg> Greg.

To: Ibexx who wrote (87945)	1/10/1999 1:30:00 PM
From: Ibexx	Read Replies (2) \| Respond to of 176387

Thread, From The Option Investor Newsletter: READ AT YOUR RISK ************************************************************ DELL Computer $77.81 (+4.62)(P3W+6.00) Dell is the largest direct sales PC manufacturer in the world, listed at 125th in the Fortune-500 and 343rd in the Global-500 of top companies, with $16.8 billion in sales over the last 4 quarters. Dell has consistently outperformed any other major stock for price performance. Dell is up +1200% in the last five years and has split their stock five times in the last three years, two times in 1998 alone. Dell is a low price, high margin producer because it has only 6 days of inventory and doesn't have to pay its suppliers (some who manufacture in Asia) until 8 days later. Since Dell gets paid before it manufactures a box, they have a huge cash float-can you say "83% return on equity?" Veteran readers may recall our obituary to DELL written in October. For those who missed it, "It is not often we have to write an obituary for a great play but for those of us still in denial, Dell may be dead. We still think Dell is a great company. Great earnings, great sales, growing at +50%, opening new markets. We think the problems are many." We assumed that the shares in float, now totaling about 980 million (that's "m", not "b"), had split so many times, so as to dilute the stocks ability to have big daily run-ups or even bigger earnings per share surprises. We reasoned it now takes an additional $10 million of earnings to create $.01 per share surprise. Dell used to surprise us by $.05 routinely-pretty hard now to hide $50 million quarterly from Wall Street, especially for an earnings surprise. In essence, Dell's ratio of daily turnover compared to shares in float couldn't move the price as much. To add insult to injury, Dell really flattened out after its last split run to $69, where it fell back to languish in the $60-$66 range. In early November, DELL spiked up to $72 in anticipation of another earnings surprise but couldn't hold it after the announcement. So we dropped it despite its sound fundamentals. Guess what? It's baaa-aaack! $69 had become the magic resistance number. Dell broke through this resistance just before Christmas, but we had our doubts that DELL could hold it. Still DELL predictably drifted over the Holidays during what was suppose to be a Santa Claus rally. We weren't buyin' it just yet. Then the good news, we got a technical confirmation last week when DELL broke above its previous all-time high of $71.94 and not only held, but kept going higher. There's more Last week, Dell announced that it will begin shipping Precision Workstations with the new 450 MHz Xeon chip, Celeron-based desktops and Genesis chip based flat screened monitors(reasonably priced too!), all while cutting the prices of its Precision Workstations by 7.7%. In late December, they announced a multi- year marketing deal with AOL to place AOL on all Dell desktops. In its server business, Dell managed a 62% year over year sequential revenue growth. With over 200 product and service awards earned during 1998, Dell has not forgotten its manufacturing and marketing prowess. Though Dell hasn't been in the news much lately, we think their price would be higher if they had been. From their 10Q filed with the SEC December 14th, we glean the following: During the third quarter and first nine months of fiscal 1999, enterprise unit sales increased 112% and 165%, respectively, compared to the third quarter and first nine months of fiscal 1998, and increased sequentially 13% over the second quarter of fiscal 1999. Notebook unit sales increased 141% and 123% in the third quarter and first nine months of fiscal 1999, compared to the same period of the prior fiscal year, and increased sequentially 16% over the second quarter of fiscal 1999. Net revenue increased in all geographic regions in the third quarter and the first nine months of fiscal 1999 as compared to the same periods of fiscal 1998. Net revenue for the third quarter of fiscal 1999 compared to the third quarter of fiscal 1998 increased 46% in the Americas, 68% in Europe and 49% in Asia- Pacific and Japan. Net revenue for the first nine months of fiscal 1999 compared to the first nine months of fiscal 1998 increased 48% in the Americas,67% in Europe and 39% in Asia-Pacific and Japan. This stuff used to make front page news. There's barely a whisper lately. All told (technicals, business model, recent quiet, earnings coming) we think Dell will get noticed again prior to earnings scheduled February 17th and give us that run-up one more time. Though volume has been a little weak, look for it to pick up steam as Dell approaches earnings. Now's the time to scale into a position. (on a trading note.. First Call has earnings scheduled for Feb. 25th. We will keep you posted when we discover the truth.) BUY CALL FEB-75 DLQ-BO OI=18325 at $7.63 SL=5.75, ITM BUY CALL FEB-80*DLQ-BP OI=13051 at $5.00 SL=3.25 BUY CALL FEB-85 DLQ-BO OI=14352 at $3.13 SL=1.50 BUY CALL MAY-85 DLQ-EQ OI= 7578 at $8.38 SL=6.50 Picked on Jan. 6th at $75.25 PE = 73 Change since picked +$ 2.56 52 week low =$19.87 Analysts Ratings 12-8-10-0-0 52 week high=$80.13 Last earnings 10/98 est= .27 actual=.28 surprise +3.7% Next earnings 02-17 est= .31 versus=.20 Chart = quote.yahoo.com Ibexx